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BW ONLINE SURVEY

Cover Story: The Hype Machine

April 3, 2000

Hype or Help?

A flood of information inundates investors daily and, indeed, by the
minute thanks to TV, the Internet, and investing publications. Much of the information is good, no doubt, but let's face it, some of it is hype.

A new type of investor has arisen -- the amateur who buys stocks on
short-term news events or media mentions, but overwhelmingly get burned. A rising concern is that media is a driving force behind stock trading and the bull market itself, and that "irrationally exuberant" stock market coverage may be setting investors up for a fall when the next downturn comes.

We hope you’ve read and profited from our cover story "The Hype Machine." Just over 100 users answered this survey and here is what they had to say. Of course, we make no claims to scientific validity here. We're simply taking stock of the views of our informed readers.

1. Do you think media hype is a problem for U.S. stock markets?

77.88% Yes17.70% No4.42% Not sure

2. Which statement do you most agree with?

30.97% Investors are positively served by the new flow of information from the Internet and publications.55.75% TV, the Internet, and stock market publications have helped generate a stock market bubble.10.62% Neither statement2.65% Not sure

3. Do you think the real-time information presented on television and the Internet has created more amateur momentum investors?

96.46% Yes1.77% No1.77% Not sure

4. Do you think analysts appearing on market TV shows are...

11.50% giving a fair evaluation of companies?74.34% giving mainly a bullish spin to things?14.16% Not sure

5. Have you ever made an investment based on short-term corporate
forecasts presented on TV financial shows?

17.70% Yes 81.42% No

6. Which of the follwing media have the biggest impact on day-to-day stock prices?

64.60% Television such as CNNfn and CNBC8.85% Online investment sites such as The Street.com or Marketwatch.com4.42% Investor publications such as Money and Smart Money8.85% None of the above13.27% Not sure